AASHNI SHAH EDITORIAL CONSULTANCY LIMITED

Executive Summary

Aashni Shah Editorial Consultancy Limited is a newly established micro-entity showing strong balance sheet growth and solid working capital, supporting its capacity to service credit. The company’s simple ownership and low leverage reduce risk, making it suitable for credit approval with standard monitoring. Attention should focus on maintaining liquidity and consistent trading performance as the business matures.

AASHNI SHAH EDITORIAL CONSULTANCY LIMITED - Analysis Report

Company Number: 13835843

Analysis Date: 2025-07-20 13:32 UTC

1. Credit Opinion: APPROVE
   Aashni Shah Editorial Consultancy Limited demonstrates a positive net asset position and working capital, indicating capacity to meet short-term obligations. The company is very young (incorporated 2022) but has shown rapid balance sheet growth over two years, suggesting improving financial health. The director is also the sole significant controller, which simplifies governance and accountability, though it concentrates risk. There are no adverse filing issues or director conduct concerns. The company operates in a professional services niche which generally has lower capital intensity and moderate risk. Credit approval is recommended with routine monitoring of trading performance.

2. Financial Strength:

• Net assets increased from £1 in 2023 to £26,684 in 2024, reflecting capital injection or retained earnings.
• Current assets of £38,175 versus current liabilities of £10,878 yield a healthy net working capital of £27,297.
• The balance sheet shows minimal accruals (£613), indicating limited outstanding obligations.
• No long-term liabilities reported, implying low financial leverage and low fixed cost burden.
• The company qualifies as a micro-entity with simple structure and low complexity.

3. Cash Flow Assessment:

• Cash specifically reported was minimal in 2023 (£1), but current assets now likely include trade receivables or cash equivalents totaling £38,175.
• Positive net current assets indicate sufficient liquidity to cover short-term payables.
• Operating cash flows are not explicitly disclosed, but the balance sheet suggests adequate working capital to fund operations.
• With only one employee and low overhead, cash burn is expected to be low.
• Continued monitoring of cash conversion cycle and debtor collection is advisable to confirm liquidity stability.

4. Monitoring Points:

• Track future filings for continuation of net asset growth and maintenance of positive working capital.
• Monitor director’s ongoing involvement and any changes in ownership or control that could affect management stability.
• Watch for timely payment of creditors and any increase in liabilities or use of external debt.
• Assess revenue and profit trends to ensure the company can sustain and improve cash flow generation.
• Review any expansion plans that might increase fixed costs or capital requirements.